Emission Trading Systems in the GCC: Needs and Expected Benefits

Abstract

This thesis delves into the multifaceted realm of Emission Trading Systems (ETS), drawing insights from two pivotal papers that explore the intricacies of these systems on a global scale and within the specific context of the United Arab Emirates (UAE). The study first meticulously analyzes the execution of ETS in twenty different regions, ranging from the provincial level to the supranational level. It investigates diverse strategies employed by regions, such as the European Union’s emphasis on green technology, the United States’ focus on distributional equity, and Germany’s efficient revenue management. The conclusion underscores the pivotal role of revenue distribution in ETS, advocating for its significance in addressing environmental challenges, fostering equity, and supporting sustainable economic development. Following to the initial study a mathematical model is developed to explore the significant implications of an Emission Trading System (ETS) within the United Arab Emirates (UAE). For the study, The UAE serves as the starting point for a more comprehensive and detailed study of ETS, laying the groundwork for further research within the Gulf Cooperation Council (GCC) region. It closely examines essential factors such as emission caps and carbon prices. The model reveals a direct correlation between stringent caps and substantial emission reduction, notably in the power generation sector, and explores the challenges faced by high energy-intensive industries followed by prompt discussions on innovative strategies, including alternative decarbonization techniques. Furthermore, trading dynamics and revenue projections shed light on the economic intricacies and opportunities inherent in the ETS landscape for the UAE.

Date of Award	15 Dec 2023
Original language	American English
Supervisor	Ahmad Mayyas (Supervisor)